MANAGING REQUIREMENTS AND ENGAGEMENTS

FOR THE CANADIAN WORKFORCE

Case study on PAK Electron – Converting to ERP Systems

GROUP MEMBERS

C0911074- Anmol Gaba

C0912555- Dhruv Sood

C0910908 – Navjot Singh

C0911255 – Raja Ayyappan

C0910101- Sandesh Sitoula

C0910943- Rohith Reddy Thakkalla

EXECUTIVE SUMMARY
 ERP Implementation - In 2007 PEL recognized the need to upgrade its information
system and move away, from the FoxPro platform to a top-tier ERP system. This process
took two years and was divided into three phases. The focus was on improving areas
such as accounting order management, inventory, procurement, and planning. External
consultants, from A.F. Fergusen assisted with this journey.

 The implementation of the ERP system is expected to improve PEL’s manufacturing

capabilities streamline operations and make use of technology to drive growth.

 PEL faced financial strain, employee resistance to change, budget constraints, and
increased employee turnover during the ERP implementation process.

 The journey of PELs transition, to ERP serves as an example for companies who are
thinking about making changes. It provides lessons, on the challenges faced when
moving from systems to new and improved ERP solutions.
INTRODUCTION
 Pakistan Electron Limited (PEL) is a leading manufacturer of electrical goods in
Pakistan. It was established in 1956 through specialized collaboration with M/ s AEG
of Germany.
 We will specifically look at the difficulties and issues PEL encountered during the
process of moving its systems to an Enterprise Resource Planning (ERP) effect, all the
while maintaining its dedication to quality, invention, and its valued pool.
 This case study provides perceptive information about the dynamics of change and
adaptation in the face of request demands that are constantly changing and
technological advancements.
INDUSTRIAL ANALYSIS
 To conduct an industrial analysis of Pak Electron, we have used various frameworks and
tools, such as PESTEL analysis, Porter's Five Forces, and financial analysis.

 PESTEL ANALYSIS

• Political Factors
• Economical Factors
• Sociocultural Factors
• Technological Factors
• Environmental Factors
• Legal Factors
INDUSTRIAL ANALYSIS
 PORTER’S FIVE FORCES

• Threat of New Entrants

• Bargaining Power of Suppliers
• Bargaining Power of Buyers
• Threat of Substitutes
• Rivalry among Competitors

 Financial Analysis: Review PEL's financial statements, including income statements,

balance sheets, and cash flow statements. Compare PEL's financial performance to
industry benchmarks to understand how it stacks up against its competitors.
 FIRM ANALYSIS

Human Resource Transition Analysis

• Attrition and Employee Turnover
• Competitive Hiring
• Training Costs
• Knowledge Drain
• Change Management
• Culture Shift
• Lack of Employee Engagement
STRATEGIC ANALYSIS
Issues faced by PEL during the projects
• ERP tool
• Complex implementation
• Transition Delays
• Issues in Bridging Gaps
• Employees resistance to change
• Miscommunication and Lack of engagement
DISCUSSION AND RECOMMENDATIONS
 Data Accuracy
 Financial Reporting
 Networking Issues
 Technical Issues
 On-the-job Trainings
 Loss of Revenue
CONCLUSION

 The company did not have a clear vision and strategy for the ERP project and did not
involve all the stakeholders and users in the planning and design stages.
 The company did not allocate enough resources and time for the ERP project and
underestimated the complexity and scope of the implementation
 The company did not manage the change management and training aspects of the ERP
project effectively and faced resistance and dissatisfaction from the staff who were
reluctant to adopt the new system.
 The company did not ensure the quality and accuracy of the data being entered and
migrated to the new system and relied on manual reconciliations and adjustments to
generate reports.
 The company did not have a strong partnership with the consulting firm that was
hired to implement the ERP project and terminated their contract prematurely due to
cost and performance issues.